Complaints linked to education loans see a drop in 2012

CHENNAI: If one goes by the statistics of the Reserve Bank of India, students are finding it easier to get education loans. S Ganesh, banking ombudsman, RBI, said there is a decrease in the number of complaints related to educational loans.

RBI data show that the banking ombudsman received 569 educational loan complaints during 2011-12, 149 complaints lesser than the previous year. In 2009-10, the ombudsman got 980 such complaints. "If a student whose grievance against a bank is not resolved to his satisfaction by the bank within one month, he/ she can approach the banking ombudsman, if the complaint pertains to any of the matters specified in the banking ombudsman Scheme 2006," said Ganesh.

Ganesh said better awareness could be the reason for the dip in complaints. "We have been conducting various awareness programmes among banks on educational loans. So most of the banks in the state are disbursing educational loans to deserving students."

But banking sources said that most of the complaints related to educational loans are not reaching the ombudsman level. "We are unable to insist banks provide loans. But we have the right to seek an explanation from them on why a loan was denied. No banks have been exempted from sanctioning educational loans in the country," said Ganesh.

D Sherin, director of Velicham, an NGO that works with first generation students, said many people are unaware of the existence of the banking ombudsman. The Velicham helpline (9698151515 ) has been receiving at least three calls every day regarding denial of educational loans. "Many banks deny educational loans, especially for professional courses. We have been getting complaints from candidates for courses like MCA and MBA," she said.